President Biden, in signing the resolution, stated: Last year, on a bipartisan basis, Congress expressed its strong disapproval of rent-a-bank schemes by adopting a resolution to overturn the Office of the Comptroller of the Currency’s (OCC) “fake lender” rule. These rent-a-bank schemes often operate under the guise of innovative “fintech” products, even as their high-cost, high-default business model inflicts harms similar to those inflicted by traditional payday lenders. PIRG, UnidosUS and the Woodstock Institute write to urge the FDIC to stop permitting its supervised institutions to front for predatory lenders evading state interest rate limits.įDIC-supervised banks are helping predatory lenders make loans up to 225% APR that are illegal in almost every state. Office of the Comptroller of the Currencyĭear Acting Chairman Gruenberg, Director Chopra, and Acting Comptroller Hsu:Īccountable.US, Americans for Financial Reform Education Fund, Center for Responsible Lending, Consumer Action, Consumer Federation of America, Consumer Reports, the Leadership Conference on Civil and Human Rights, NAACP, National Association of Consumer Advocates, National Community Reinvestment Coalition, National Consumer Law Center (on behalf of its low-income clients), Public Citizen, U.S.

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